WhatIsCrypto.info
BTC—ETH—BTC MAX SUPPLY21,000,000BTC MINED20,000,000+BLOCK REWARD3.125 BTCNEXT HALVING~2028BTC BLOCK TIME~10 MINETH BLOCK TIME12 SECETH TRANSFER21,000 GAS1 BTC100,000,000 SATS1 ETH1,000,000,000 GWEISTABLECOIN TARGET$1.00US CRYPTO FRAUD LOSSES 2025$11.4BCOINS ON COINGECKO~22,800FIRST BLOCKJAN 3 2009

What is a crypto airdrop?

Free tokens, sometimes real, very often bait.

BeginnerAbout 5 minutesReviewed November 4, 2026
The short answer

A crypto airdrop is when a project gives away free tokens to many wallets, usually to reward early users or spread ownership of a new token. Real airdrops exist, such as Uniswap's UNI in 2020 and Arbitrum's ARB in 2023, but fake airdrops are one of the most common ways scammers steal crypto.

Why projects do airdrops

  • To reward people who used the app before it had a token.
  • To spread voting power in a new DAO beyond the team and investors.
  • For publicity.

Real examples

In September 2020, Uniswap gave 400 UNI to every address that had used it before a cut-off date. In March 2023, Arbitrum airdropped ARB to users of its network. In both cases, eligible users claimed through the project's official site, announced through its official channels, and nobody had to pay to receive anything.

How fake airdrops work

  1. You see an ad, a post or a DM, or a token appears in your wallet out of nowhere, saying you can claim a reward.
  2. The link leads to a convincing copy of a real project's site.
  3. It asks you to connect your wallet and "sign" to claim. That signature is actually an approval letting the site spend your tokens, or a transaction that sends them away.
  4. Your wallet is drained in seconds. Some fake sites simply ask you to "verify" with your seed phrase.
Rules that stop almost every airdrop scam
  • A real airdrop never asks for your seed phrase or a payment.
  • Only use claim links from the project's official website or verified accounts, typed in yourself.
  • Ignore tokens that appear in your wallet unexpectedly, and don't visit sites they mention.
  • Read what you're signing. "Approve" or "setApprovalForAll" on a claim page is a red flag.
  • Consider claiming with a separate wallet that holds nothing else.

How the theft works in detail, and how to revoke an approval you regret: phishing and wallet drainers. For "send 1, get 2" offers and deepfake celebrity giveaways, see giveaway and fake airdrop scams.

Are airdrops taxed?

In the US, the IRS treats airdropped tokens as ordinary income at their fair market value when you receive them and can control them (Revenue Ruling 2019-24). Selling them later can also create a capital gain or loss. See crypto taxes.

Frequently asked questions

Are crypto airdrops real?

Some are, but most airdrop offers you see in ads and DMs are scams. Check the project's official site.

Do I have to pay to get an airdrop?

No. A real airdrop never requires a payment or your seed phrase. You may pay a small network fee to claim.

A token I don't recognize appeared in my wallet. What should I do?

Ignore it. Don't try to sell it or visit any site it names; that's how the trap works.

What is airdrop farming?

Using many apps (sometimes with many wallets) hoping to qualify for future airdrops. Projects increasingly exclude such wallets, and farming sites can be scams themselves.

Where to next

Sources

  1. Introducing UNI (Uniswap Labs blog, 2020)
  2. Arbitrum documentation
  3. Revenue Ruling 2019-24 (IRS)
  4. What to know about cryptocurrency and scams (FTC)

Written for beginners and checked against the sources listed. Last reviewed November 4, 2026. This page is educational and is not financial, tax or legal advice. How we write and check pages.